What Is a Certificate of Good Standing and Why Do You Need It?


What Is a Certificate of Good Standing and Why Do You Need It?

What Is a Certificate of Good Standing, and Why Does It Matter

Want to demonstrate to your customers that your business is legitimate, dependable and fully compliant with your state's requirements? That's exactly what a Certificate of Good Standing can do.

While you don't necessarily need a Certificate of Good Standing, it can go a long way toward cementing a good reputation and establishing trust. You'd be wise to consider getting one if you are just forming your business, though it can be useful even if your business has been around for years.

Here, we'll break down what a Certificate of Good Standing is, why having one matters and how you can obtain one yourself.

Get Your Certificate of Good Standing  And Show Proof that Your Business is in Good Standing with Your State Order Now

What Is a Certificate of Good Standing?

In short, a Certificate of Good Standing is a document issued by your Secretary of State that shows your business is compliant with your state's incorporation regulations and is therefore allowed to do business.

This is comparable to having a driver's license, passport or another form of government-issued ID — a Certificate of Good Standing proves that your limited liability company (LLC) is officially registered and authorized to do business in your state.

Depending on which state you run your business in, a Certificate of Good Standing may also be known as a Certificate of Existence, a Certificate of Authorization or a Certificate of Status. Either way, it comes in the form of a one-page document provided by your state government that shows proof of your business entity.

certificate of good standing

Why Does a Certificate of Good Standing Matter?

Now that you know what a Certificate of Good Standing is, it's easy to see why it matters for your business. In short, it's an important document you can use to show proof that your business is officially registered and allowed to operate in a specific state.

This could come in handy when obtaining a loan, renewing a business license or filing your business taxes. Having this type of certification will also showcase your business’s good reputation and prove you are a law-abiding business owner who follows the rules.

You may find yourself needing a Certificate of Good Standing in a variety of situations, such as:

How Do You Get a Certificate of Good Standing?

So how do you actually go about getting a Certificate of Good Standing? Fortunately, the process is relatively straightforward.

Once you have your business entity formed and registered with your Secretary of State, you'll need to file the appropriate Certificate of Good Standing form with your state. In most cases, you can find the form you need by performing a quick Google search or looking on your state's Secretary of State website.

After you apply for and receive your Certificate of Good Standing, make sure to stay up-to-date on any business renewal fees, file your annual reports on time and pay any other necessary business taxes.

Get Your Certificate of Good Standing Today

Ready to get your Certificate of Good Standing? Incfile can handle all the necessary paperwork for an affordable price. And if you form your business with Incfile, it's included in our $0 + state fee business formation package.

As an added bonus, you'll also get a free Registered Agent for the first year. So save your time and let Incfile handle the logistics while you keep focusing on what matters most: growing your company.

New call-to-action
Paper List

Like What You're Reading?

Get fresh monthly tips to start & grow your LLC.

Related Articles

  • 32 Side Hustles from Home That Pay More Than $100 an Hour
  • 15 Items You Can Easily Flip for $100-$5,000 in Profit a Month
  • A Giant List of Self-Employment Ideas
  • 11 Out-of-the-Box Side Hustles for Women to Make an Extra $1,000 a Month
  • How to Pay Yourself as an LLC Owner
  • What Is an LLC? Super-Simplified Infographic
  • If You're Not a U.S. Citizen, Can You Get an EIN for Your Business?
  • So You Moved? Follow This Guide to Moving Your LLC to Another State
  • Understanding DBAs and How They May Be Beneficial to Your Small Business
  • Are Non-U.S. Residents Allowed to Own a Corporation or LLC?
  • 15 U.S. States with the Lowest State Fee to Start a Business Today
  • Need a Physical Address for Your Business?
  • How to Create and File an LLC for Free
  • LLC vs. S Corp: Which Is Right for Your Business?
  • 5 Virtual Address Services for Your Small Business
  • S Corp vs. C Corp: Differences and Benefits of Each
  • Series LLC vs. LLC: Which One Do You Need?
  • ​Do LLCs Get a 1099 During Tax Time?
  • 7 Home Business Ideas That Double as Tax Write-Offs
  • PLLC vs. LLC: What You Need to Know